Why The S&P Just Hit A Record High — Despite Soaring Yields
Summary
Ed Elson discusses the S&P 500 hitting record highs despite rising bond yields, analyzing the sustainability of AI-driven earnings with John Mowry. The episode also features Robert Armstrong explaining how the frozen US housing market impacts young buyers and shifts economic reliance to AI. Finally, Elson critiques the $111 billion Paramount-Warner Bros. merger, arguing it exemplifies a growing "inheritocracy" where media power is concentrated among the children of billionaires.
Topics discussed
Sponsorships: VCX, Amex, and First Citizens
Market Vitals: S&P record, yields, and oil prices
Interview: John Mowry on market resilience and earnings
Market breadth: AI boom vs. narrow trade concerns
Small caps, CapEx cycles, and interest rate impacts
Tech concentration and semiconductor re-rating
Circular financing risks in the AI ecosystem
AI returns, debt financing, and competitive pressure
Outlook: Oil, CPI, and potential market upside
Fed expectations and closing the market segment
Sponsorships: NetSuite, Vanta, and Yahoo Finance
Housing market stats: Mortgage rates and sales decline
Interview: Robert Armstrong on frozen housing market
The 30-year fixed mortgage as a policy choice
Housing as the business cycle vs. AI's role
Zoning reform and housing supply constraints
Advice on buying vs. renting in the current market
Paramount-WBD merger and the rise of inheritocracy
Show credits and sign-off
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